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Finnish firm Poyry defends role in approval of massive dam in Laos

Controversial project will spark water conflicts along Mekong, Environmentalists and NGOs say

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The Mekong is the world's greatest inland fishery, feeding 60 million people, according to the Mekong River Commission. Photo: Reuters

The consulting firm that gave Laos a green light for a controversial dam on the Mekong River, despite objections from downstream nations, is defending its role in the project, even as the Finnish government considers an ethics complaint against the company.

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Critics including environmental groups and other NGOs have slammed the Finnish firm, Poyry, after it issued a report that concluded the Xayaburi dam project was in compliance with Laos' obligations to fellow members of the Mekong River Commission, the international body that oversees the crucial waterway.

Otto Bruun, the campaign manager of Friends of the Earth Finland said: "The company is fuelling a water conflict. This is bound to lead to serious negative human rights and environmental impact in the region."

This month, Poyry Energy was awarded a new contract to supervise the Xayaburi dam's design and engineering over the eight-year construction period. The contract prompted accusations of a conflict of interest regarding its earlier report.

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The November 2011 report, commissioned by Laos, said that other commission members and stakeholders had been adequately consulted and the Xayaburi dam could proceed without the commission's further approval.

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